Renminbi’s Share of Global Payments Falls (The Asset)
In April, the global use of the Chinese renminbi for payments fell while the US dollar continues to dominate payments.
According to Swift’s renminbi tracker, the Chinese currency fell to position six with a share of 1.82% to slightly trail the Canadian dollar with a share of 1.83%. Overall, renminbi payments value decreased by 7.73% compared to March 2016, whilst in general all payments currencies decreased by 4.60%.
However, renminbi use has gained traction in certain markets such as India (albeit the country has one of the lowest renminbi adoption rates among Asian countries/regions – ranked 38th globally). In April 2016, 3.8% of all payments made between India and mainland China/Hong Kong were exchanged in renminbi compared with only 0.2% back in April 2014.
Since 2014, the Chinese currency moved from position number six to position four for payments by value (overtaking the Hong Kong dollar and the British pound). The US dollar, however, continues to lead with a share of almost 80%, followed by the Indian rupee (7.2%) and the euro (6.3%).
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